5 Cheap Food Stocks to Buy

In this article, we will be taking a look at 5 cheap food stocks to buy. To read our detailed analysis of the food sector and to see more of these stocks, you can go directly to see the 10 Cheap Food Stocks to Buy.

5. Archer Daniels Midland Company (NYSE:ADM)

Upside Potential as of April 1: 28.67%

Average Price Target as of April 1: $102.5

Number of Hedge Fund Holders: 40

Archer Daniels Midland Company (NYSE:ADM) is an agricultural products and services company. It provides a range of food products such as vegetable oils and protein meats, among more.

Vincent Anderson, an analyst at Stifel, holds a Buy rating on Archer Daniels Midland Company (NYSE:ADM) shares, alongside a $116 price target.

Archer Daniels Midland Company (NYSE:ADM) is trading at a P/E ratio of 11.56, which is below the consumer staples median of 19.81 and its own five-year average of 14.11. This shows that the stock is currently undervalued, but its price is likely to rise considering analyst sentiments. Analysts have an average price target of $102.5 on the shares, with a high forecast of $116.

There were 40 hedge funds long Archer Daniels Midland Company (NYSE:ADM) in the fourth quarter, with a total stake value of $701 million.

4. Wilmar International Limited (OTC:WLMIF)

Upside Potential as of April 1: 29.58%

Average Price Target as of April 1: $4.03

Number of Hedge Fund Holders: N/A

Wilmar International Limited (OTC:WLMIF) is another agricultural products and services company on our list. It is based in Singapore and provides edible food products, among more.

Analysts on Wall Street see Wilmar International Limited (OTC:WLMIF) as a Strong Buy, with seven Buy ratings up till April 1. The have placed an average price target of $4.03 on the shares, with a high forecast of $5.03. The shares were trading at $3.11 on April 1, so the average price target gives the stock an upside potential of 29.58%.

3. Herbalife Nutrition Ltd. (NYSE:HLF)

Upside Potential as of April 1: 30.43%

Average Price Target as of April 1: $21

Number of Hedge Fund Holders: 33

Herbalife Nutrition Ltd. (NYSE:HLF) is a consumer staples company. It provides targeted nutrition, meal replacement products, protein shakes, and healthy snacks, among more.

The company is trading with a P/E ratio of 5.46 and and EV/Revenue (TTM) multiple of 0.77. Both these figures demonstrate the intrinsic undervaluedness of Herbalife Nutrition Ltd. (NYSE:HLF) shares. Analysts on Wall Street have placed an average price target of $21 on the shares, with a high forecast of $28.

Herbalife Nutrition Ltd. (NYSE:HLF) was found among the 13F holdings of 33 hedge funds in the fourth quarter. Their total stake value was $660 million.

2۔ Dole plc (NYSE:DOLE)

Upside Potential as of April 1: 44.8%

Average Price Target as of April 1: $17

Number of Hedge Fund Holders: 16

Dole plc (NYSE:DOLE) is a packaged foods and meats company. It is based in Dublin, Ireland.

On February 1, Deutsche Bank’s Christopher Barnes reiterated a Buy rating on Dole plc (NYSE:DOLE) shares, alongside placing a price target of $17 on the stock.

Dole plc (NYSE:DOLE) was trading with an EV/Revenue (TTM) multiple of 0.29 as of April 1, showing how the stock is trading cheaper than its potential at present. Analysts on Wall Street see the stock as a Strong Buy and have placed an average price target of $17 on the shares.

Our hedge fund data for the fourth quarter shows 16 funds long Dole plc (NYSE:DOLE), with a total stake value of $155 million.

Meridian Funds, managed by ArrowMark Partners, mentioned Dole plc (NYSE:DOLE) in its fourth-quarter 2022 investor letter. Here’s what the firm said:

“Dole plc (NYSE:DOLE) sources, processes, markets, and distributes fresh fruit and vegetables on a global basis. The company reported solid quarterly results, with strength in the fresh fruit segment offsetting weakness in other parts of the business. We also believe the results provided evidence that company fundamentals may be turning the corner after a rough 2022, during which concerns about its floating rate debt, input cost inflation, temporary plant closures, and a salad recall weighed on the stock. We believe the market is overly focused on these matters and continues to overlook the significant value in Dole’s fixed asset base and its ability to offset cost inflation with price increases. Meanwhile, our covered call positions helped insulate the Fund from losses in Dole as we wait for the turnaround to play out.”

1. SunOpta Inc. (NASDAQ:STKL)

Upside Potential as of April 1: 55.84%

Average Price Target as of April 1: $12

Number of Hedge Fund Holders: 22

SunOpta Inc. (NASDAQ:STKL) manufactures and sells plant-based and fruit-based food and beverage products. The company is based in Eden Prairie, Minnesota.

Wall Street analysts see SunOpta Inc. (NASDAQ:STKL) as a Moderate Buy and have placed an average price target of $12 on the shares. The stock was trading at $7.7 on April 1, so the average price target gives the shares an upside potential of 55.84%. Additionally, the shares were also trading at an EV/Revenue (TTM) multiple of 1.4 on April 1, further showing how undervalued they are at present.

In total, 22 hedge funds were long SunOpta Inc. (NASDAQ:STKL) in the fourth quarter, with a total stake value of $294 million.

Diamond Hill Capital, an investment management company, mentioned SunOpta Inc. (NASDAQ:STKL) in its third-quarter 2022 investor letter. Here’s what the firm said:

“On an individual holdings basis, top contributors to return included WESCO International, Mr. Cooper Group and SunOpta Inc. (NASDAQ:STKL). SunOpta is a leading global company focused on natural food, ingredient sourcing, organic food and specialty foods. Revenue growth has been driven by strong demand for its plant-based products, and the company’s pricing power has mitigated the impact of inflation.”

See also Largest Food and Beverage Companies in the World and 12 Best Food Dividend Stocks To Buy.